Loading...

Messages

Proposals

Stuck in your homework and missing deadline? Get urgent help in $10/Page with 24 hours deadline

Get Urgent Writing Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework & Achieve A+ Grades.

Privacy Guaranteed - 100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support

Least persuasive type of audit evidence

20/10/2021 Client: muhammad11 Deadline: 2 Day

There are 26 questions on this Quiz. Please attempt all questions. Record your answers on a separate sheet(s) and submit the file into your Assignment folder for Quiz #2. The following questions concern persuasiveness of evidence. Choose the best response. 1. Which of the following types of documentary evidence should the auditor consider to be the most

reliable? a. A sales invoice issued by the client and supported by a delivery receipt from an outside

trucker. b. Confirmation of an account payable balance mailed by and returned directly to the auditor. c. A check, issued by the company and bearing the payee’s endorsement, that is included with

the bank statements mailed directly to the auditor. d. An audit schedule prepared by the client’s controller and reviewed by the client’s treasurer.

2. The most reliable type of audit evidence that an auditor can obtain is a. Physical examination by the auditor. b. Calculations by the auditor from company records. c. Confirmations received directly from third parties. d. External documents.

3. Audit evidence can come in different forms with different degrees of persuasiveness. Which of the following is the least persuasive type of evidence?

a. Vendor’s invoice. b. Bank statement obtained from the client. c. Computations made by the auditor. d. Pre‐numbered sales invoices.

4. Which of the following is the least persuasive documentation in support of an auditor’s opinion? a. Schedules of details of physical inventory counts conducted by the client. b. Notation of inferences drawn from ratios and trends. c. Notation of appraisers’ conclusions documented in the auditor’s files. d. Lists of negative confirmation requests for which no response was received by the auditor.

QUIZ #2 – ACCT 422‐ Auditing – SPRING 2017 PAGE 2 Please write a sentence or two that responds to the following seven (7) questions concerning the reliability of evidence: 5. Why is confirmation normally more reliable evidence than asking the client? 6. When would a confirmation NOT be highly reliable? 7. Under what circumstances is the physical observation of inventory considered relatively unreliable

evidence? 8. Why is a re‐performance test used? 9. What are one example of relatively reliable documentation and one example of less reliable

documentation? . 10. When does the qualification and experience of the client’s representative make a significant

difference in the reliability of the evidence? 11. When would analytical procedures be used? Please provide one example of an analytical procedure.

The following three questions pertain to client acceptance. Choose the best response. 12. In assessing whether to accept a client for an audit engagement, a CPA should consider

Client Business Risk Acceptable Audit Risk

a. Yes Yes b. Yes No c. No Yes d. No No

13. When approached to perform an audit for the first time, the CPA should make inquiries of the

predecessor auditor. This is a necessary procedure because the predecessor may be able to provide the successor with information that will assist the successor in determining whether

a. The predecessor’s work should be used. b. The company follows the policy of rotating its auditors. c. In the predecessor’s opinion internal control of the company has been satisfactory. d. The engagement should be accepted.

QUIZ #2 – ACCT 422‐ Auditing – SPRING 2017 PAGE 3 14. What is the responsibility of a successor auditor with respect to communicating with the

predecessor auditor in connection with a prospective new audit client?

a. The successor auditor has no responsibility to contact the predecessor auditor. b. The successor auditor should obtain permission from the prospective client to contact the

predecessor auditor. c. The successor auditor should contact the predecessor regardless of whether the prospective

client authorizes contact. d. The successor auditor need not contact the predecessor if the successor is aware of all

available relevant facts. The following questions deal with materiality. Choose the best response. 15. Which one of the following statements is correct concerning the concept of materiality?

a. Materiality is determined by reference to guidelines established by the AICPA. b. Materiality depends only on the dollar amount of an item relative to other items in the

financial statements. c. Materiality depends on the nature of an item rather than the dollar amount. d. Materiality is a matter of professional judgement.

The following three questions concern materiality and risk. Choose the best response. 16. Edison Corporation has a few large accounts receivable that total $1,400,000. Victor Corporation has

a great number of small accounts receivable that also total $1,400,000. The importance of a misstatement in any one account is therefore greater for Edison than for Victor. This is an example of the auditor’s concept of

a. Materiality. b. Comparative analysis. c. Reasonable assurance. d. Relative risk.

17. Which of the following elements ultimately determines the specific auditing procedures that are

necessary in the circumstances to afford a reasonable basis for an opinion?

a. Auditor judgment. b. Materiality. c. Inherent risk. d. Reasonable assurance.

QUIZ #2 – ACCT 422‐ Auditing – SPRING 2017 PAGE 4 18. Which of the following best describes the element of inherent risk that underlies the application of

generally accepted auditing standards, specifically the standards of field work and reporting?

a. Cash audit work may have to be carried out in a more conclusive manner than inventory audit work.

b. Intercompany transactions are usually subject to less detailed scrutiny than arm’s length transactions with outside parties.

c. Inventories may require more attention by the auditor on an engagement for a merchandising enterprise than on an engagement for a public utility.

d. The scope of the audit need not be expanded if misstatements that arouse suspicion of fraud are of relatively insignificant amounts.

The remaining questions deal with tests of controls. Choose the best response. 19. Which of the following statements about tests of controls is most accurate?

a. Auditing procedures cannot concurrently provide both evidence of the effectiveness of internal control procedures and evidence required for substantive tests.

b. Tests of controls include observations of the proper segregation of duties. c. Tests of controls provide direct evidence about monetary misstatements in transactions. d. Tests of controls ordinarily should be performed as of the balance sheet date or during the

period subsequent to that date. 20. Which of the following would be least likely to be included in an auditor’s tests of controls?

a. Documentation. b. Observation. c. Inquiry. d. Confirmation

21. The two phases of the auditor’s involvement with internal control are sometimes called

“understanding and assessment” and “tests of controls.” In the tests of controls phase, the auditor attempts to obtain

a. A reasonable degree of assurance that the client’s internal controls are operating effectively on a consistent basis throughout the year.

b. Sufficient, competent evidential matter to afford a reasonable basis for the auditor’s opinion.

c. Assurances that informative disclosures in the financial statements are reasonably adequate.

d. Knowledge and understanding of the client’s prescribed procedures and methods.

QUIZ #2 – ACCT 422‐ Auditing – SPRING 2017 PAGE 5 22. Which of the following is ordinarily considered a test of control audit procedure?

a. Sending confirmation letters to banks. b. Counting and listing cash on hand. c. Examining signatures on checks. d. Preparing reconciliations of bank accounts as of the balance sheet date.

23. A factory foreman at Stevens Company discharged an hourly worker but did not notify the payroll

department. The foreman then forged the worker’s signature on time cards and work tickets and, when giving out the checks, diverted the payroll checks drawn from the discharged worker to his own use. The most effective procedure for preventing this activity is to

a. Require written authorization for all employees added to or removed from the payroll. b. Have a paymaster who has no other payroll responsibility distribute the payroll checks. c. Have someone other than persons who prepare or distribute the payroll obtain custody of

unclaimed payroll checks. d. From time to time, rotate persons distributing the payroll.

24. The CPA reviews Peter Company’s payroll procedures. An example of an internal control deficiency

is to assign to a department supervisor the responsibility for

a. Distributing payroll checks to subordinate employees. b. Reviewing and approving time reports for subordinates. c. Interviewing applicants for subordinate positions before hiring is done by the personnel

department. d. Initiating requests for salary adjustments for subordinate employees.

25. Effective internal control over the purchasing of raw materials should usually include all of the

following procedures except

a. Systematic reporting of product changes that will affect raw materials. b. Determining the need for the raw materials prior to preparing the purchase order. c. Obtaining third‐party, written quality and quantity reports prior to payment for the raw

materials. d. Obtaining financial approval prior to making a commitment.

QUIZ #2 – ACCT 422‐ Auditing – SPRING 2017 PAGE 6 26. Budd, the purchasing agent of Lake Hardware Wholesalers, has a relative who owns a retail

hardware store. Budd arranged for hardware to be delivered by manufacturers to the retail store on a COD basis, thereby enabling his relative to buy at Lake’s wholesale prices. Budd was probably able to accomplish this because of Lake’s poor internal control over.

a. Purchase requisitions b. Cash receipts. c. Perpetual inventory records. d. Purchase orders.

Homework is Completed By:

Writer Writer Name Amount Client Comments & Rating
Instant Homework Helper

ONLINE

Instant Homework Helper

$36

She helped me in last minute in a very reasonable price. She is a lifesaver, I got A+ grade in my homework, I will surely hire her again for my next assignments, Thumbs Up!

Order & Get This Solution Within 3 Hours in $25/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 3 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 6 Hours in $20/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 6 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 12 Hours in $15/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 12 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

6 writers have sent their proposals to do this homework:

Helping Hand
Calculation Master
Top Rated Expert
Engineering Mentor
Math Specialist
Instant Homework Helper
Writer Writer Name Offer Chat
Helping Hand

ONLINE

Helping Hand

Being a Ph.D. in the Business field, I have been doing academic writing for the past 7 years and have a good command over writing research papers, essay, dissertations and all kinds of academic writing and proofreading.

$24 Chat With Writer
Calculation Master

ONLINE

Calculation Master

I have read your project description carefully and you will get plagiarism free writing according to your requirements. Thank You

$24 Chat With Writer
Top Rated Expert

ONLINE

Top Rated Expert

Being a Ph.D. in the Business field, I have been doing academic writing for the past 7 years and have a good command over writing research papers, essay, dissertations and all kinds of academic writing and proofreading.

$21 Chat With Writer
Engineering Mentor

ONLINE

Engineering Mentor

Being a Ph.D. in the Business field, I have been doing academic writing for the past 7 years and have a good command over writing research papers, essay, dissertations and all kinds of academic writing and proofreading.

$28 Chat With Writer
Math Specialist

ONLINE

Math Specialist

I am an elite class writer with more than 6 years of experience as an academic writer. I will provide you the 100 percent original and plagiarism-free content.

$43 Chat With Writer
Instant Homework Helper

ONLINE

Instant Homework Helper

I am an academic and research writer with having an MBA degree in business and finance. I have written many business reports on several topics and am well aware of all academic referencing styles.

$28 Chat With Writer

Let our expert academic writers to help you in achieving a+ grades in your homework, assignment, quiz or exam.

Similar Homework Questions

Food Safety Discussion - 12.5 study guide answers biology - I need 4000 words on an article - Find area between two z scores - Steel structure staircase detail - Why is negative staining useful for accurately determining cell size - My sister's keeper based on true story - The service a homeowner performs when she mows her yard is not included in gdp because - Anthracene and maleic anhydride - Animals in captivity suffer from stress boredom and confinement - Discussion - Blood shunting during exercise - Young man's guide to the orchestra - Reflection 7 - Annotated bibliography introduction - Assignment Due tomorrow #1 - The co operative group head office - Smartart layout options to square - Overhead crane runway design - Using accrual accounting expenses are recorded and reported only - How does design affect readability course hero - Silver nitrate calcium carbonate net ionic equation - Acrostic poems for kids - Discount factor table cima - Agv v flyer visor - Beauty by jane martin review - Biointeractive virus explorer answer key - James maki face transplant - Research Paper on Pharma Startup company - Discussion - My phoenix edu forward apply - Poli 113a - Beam detector wiring diagram - Discussion due 8/22 5pm - Data flow diagram for real estate management system - InfoTech in a Global Economy - Ness ncl ac uk - Week 9 Case study health science 450 - Netbeans gui application - Toys r us income statement - Safe work method statement for lawn mowing - Employee engagement project charter - College accounting a practical approach edition - His 100 topic exploration worksheet - Salesforce consulting partner levels - Anton chekhov technique in writing the short story - Beant college of engineering and technology dr tejinder singh sidhu - What are the disadvantages of buying a franchise comparing to setting up a new business ? - Chemistry in context answers - Policy Diffusion - Grammar translation method demonstration - Edfenergy com myaccount sme - Avaya proactive contact supervisor - LEADERSHIP AS SERVICE - Emerging threats_6.2 - I need 300 words on Epidemiology - Health the basics 10th edition pdf - Ferocity in a simple sentence - Speech peer review - Eric foner give me liberty volume 2 - Topic 5 DQ 1 - Give them the pickle full video - Diploma of sustainable practice - Population per square mile in china - Returns and Bond Ratings assignment - +91-8306951337 get your love back by vashikaran IN Tirunelveli - 978 1 260 07684 4 - Duravit spare parts list uk - The vampire diaries lexi real name - Elements named after places - First year of College Seminar - Is 75 a composite number - Netflix disruptive technology - Ati system disorder template pdf - Transcultural theory of nursing by madeleine leininger - Mathematical economics chiang 4th edition - Discussion Post Week7 - Fun facts about fault block mountains - 23 PPA 400 WORDS APA POST - Alcatel pop 4 case tesco - Acct 307 Excel project need help completing m - The task of crafting a strategy is - Chattanooga ice cream case study solution - Lpg gas bottle changeover valve - Griffith uni cover sheet - Assignment - Don t blame the eater - Acc 291 exercise 8 11 - Benchmark assignment business plan presentation - You ll never walk alone karaoke female version - Blank usa nickname of a record label headquarter - Arthur rubber and foam wagga - What i see in lincoln's eyes - Electric field plotting lab report - Nyu stern valuation course - Inspector calls inspector quotes - Taking to the streets - Radix sort program in c++ - ESSAY - Help me with my homework for free